Original cost The term 'Original cost' as it applies to the area of energy can be defined as ' The initial amount of money spent to acquire an asset. It is equal to the price paid, or present value ofthe liability incurred, or fair value of stock issued, plus normal incidental costs necessary to put the asset into its initial use'.

About the author

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".